Off-shoring is the activity of some or all of a firm"s tasks to a place exterior of the residence country; outsourcing is the reassignment of activities to an additional firm, either inside or external the house country


You are watching: Why do internal economies of scale lead to imperfectly competitive industries?

If a U.S. firm moves some of its assembly operations to the firm"s foreign affiliate located in Mexico, this is an example of
Trade models built solely on the concept of comparative advantage have a ____ document as soon as it pertains to predicting a country"s trade patterns
A product is developed in a monopolistically competitive sector via economic situations of scale. If this sector exists in two countries, and also these 2 countries interact in trade one via the various other, then we would expect
lower price, a more comprehensive range of options for consumers, more firms- each operating at a bigger scale (all of the above)
The number to the best reflects curves representing the average expense of golf clubs created in Scotland also and also Malaysia and the human being demand also It is assumed that the people demand also for clubs deserve to be satisfied completely by either nation If, by historical accident, scottish golf club producers are initially to be establimelted, Malaysian club producers will
be unable to acquire their "foot in the door" because any type of brand-new Malaysian start up firm will certainly have an average cost greater than the prevailing scottish price
When the US signed a complimentary trade agreement through Canada, no one thought twice around it. The ideas of intermarket and also intramarket trade deserve to describe the differences in opplace to the two trade agreements in the complying with manner
substantial productivity, offered the performance trade in between us and also mexico is intermarket trade(all of the above)
Which of the adhering to is a theoretical justification for targeting the advancement of particular industries
In order for a firm to be able to "dump" a great on a foreign industry, it have to have actually the sector price establishing power in
does a firm through price setting power challenge a downward sloping demand curve or a horizontal demand also curve?
every one of the above are difficulties -choosing industry to target-discovering optimum amount of resources to carry out the targeted market -benefits are partly caught by foreign firms -encouragement of rent seeking by firms in various other industries
advantage is the foundation of our knowledge of the gains from profession and also the potential earnings distribution effects of trade
maquiladora zones which allow firms to develop items for export without paying tariffs on imported parts and also material hat are offered in production and also the truth that 2/3 of us-mexico trade is intra-firm
what factors have the right to cause personal retransforms from production to be smaller than social retransforms of production
all of the abovecap market imperfections, wright here firms via brand-new and also sound concepts are unable to lure financing knowledge spillovers wbelow firms learn from each otherinability to coordinate activities between firms as soon as the success of an industry needs multiple players to enter simultaneously
differing implications, through interior economies- big firms are most likely to arise while external economic climates tend to yield smaller sized sized firms
an industry in which economic climates of range are primarily exterior will certainly tend towards a sector structure well-known as
created in monopolistically competitive sector. if this sector exists in two countries, and also these 2 nations engage in profession one via the various other, then we would certainly expect
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